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700 Anderson Hnl !'load Pun:;b'!"e, New York 10577 wW"''4>ep$lco.com reL 91+253-3530 Fa,( 914-253--3051
MAURA ABELN SMitH i;XiOCU11VE \lICE PIlESlDENT GOVERNMENT AFFAIRS July 14,2011 GENERALCOUNsELANDCORPORPJE SECRETARY
Federal Trade Commission Office ofthe Secretll1}' R.oom Hcl13 (Annex W) 600 P¢nnsylvMia Avenue, N.W. WashiligtOli, D.C. 20580
Re: PtlpsiCo, Inc. Cotntnemson Interagency Working Group Qn Food Marketed to Children: Proposed Nlifrition Principles: FTCProjectNo. P094513 and Interagency Working Group oli Food Marketed to Children: General Comments and Proposed.MarketingDefiliitions: FTCPtoject No. P094513
To Whom It May Concern:
PepsiCo appreciates the opportuliity to. submit comments to the Interagency Working Group ("IWG'') concerning its ProposW o!1FoQd Marketed to Children (the "Proposal"). Although we share the ultimate goals ofthe lWG,. this Proposal fails to achieve its stated objective. It does nothing to address the only real solution to the o!Jesity epidemic - that is, to educate and motivate pe9Ple to eat sensibly and exercise. Cutting to the chase, we strongly urge the IWG to withdraw the Proposal in its entirety, and for the reasons set forth below, to embrace the Children's FOl)d and Beverage AdvertiSing Initiative as a more viable alternative to the Proposal,
The Interagency Working Group Proposal would eteatea de facto ban against most fonus of food advertising, marketing and promotion, Although the Proposal clalms to target only "advertising to children," it Wl)uld actllally captUte a vastll11lotint of cotntnercial speech clearly targeted towards adults, .While the Proposal cillims to restrict only advertising for '~1Ulk foods," it WQu1qcaptllre a wide array of foods that government nlltritiQnist.s and the medical cQrnmUnity have long considered an acc.eptable part Qf a healthy balanced diet.
In oUr view, there is no single or convenient solution to the CQmple:x and multi-faceted proplem of rising obesity rates.. f.!:Qfi:i!ithS@Iding, the. IWG proposes these sweeping limits on advertising without any credible evidence that such restrictions would likely reduce rising obesity rates. FprfherJ1lQre, the Prop.osr!.l does nQt Qi'fer any recotntnendatiohs to address the obesity epidemic, through educat!Q],1 tha.t would help peQple balance calorie intake and calol'iese:xpended toacbieve a healthY Weight.
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Well before the TWO came forth with. thi$ "voluntary" Proposal, PePsiCo hal> been l¢adj,ng the way with responsible marketit!.g practices, We have redueed the amount of advertising primarily directed to children, and established stringent but practical nutrition criteria for products that we advertise to children twelve and tulder, and we are a futulding member Of. the Children's Food and Beverage . Advertising Initiative ("CJ:1BAI"). This initiative ensures tr.lnsparency and accotuitabiIity for our public commitments.
Tollleetour conrrnitll1ents, notjllst tQchlldrenbnt to an iJfolltco:t\SUl11ets, wecohtinue to improve the nutritional credentials ofmany ofom existingptoducts, such as bY removing tr.lns fats or decreal>ingsodillril or sug!l,r. We are a fo®dingll1~b¢rof t!)e Healthy Weight Conrrnitll1ent :Foundation and a sponsor of countless •. 0rgani2llUions (such. as becoming the first corporate mission sponsor of tbe YMCA) and activities (such as the AIl1erican Heart Association's Annual H¢a:rt WaIk)i thatpTomote the well.being of our consumers. Thus, even in the absence of the IW!3'sPl:Qposal, the federal. agencies involved in thi$ effort can te$tll$smed that PepsiCo Wil1conti6.ile tQmake and deliver on meaningful comniitments to promote and make available healthy choices, and at the same time, engage in responsible marketing practices.
For your convenience, We have divided our specific comments inte the follewing sections:
r. Introduction to PepsiCo and Performance with Purpose II. PepsiCo's Record ofResponsible Practices III. PepsiCo's General Comments on the Proposal IV. PepsiCo's Comments on the Proposed Nutrition Criteria V. PepsiCo's Comments on the Proposed Marketing Definitions VI. The Existing Children's Food and Beverage Advertising Initiative is a
Preferable Alternative to the IWG Proposal VII. Conclusion
I. Introduction to PepsiCo andPerf'Ql'manCe withPiIl'pose
PepsiCo's Size.andScale Wit!) lUl!).ual 2010 revenues of approXimately $60 billion, PepsiCo offers the world's largest portfolio ofbiUhm-dollar fOOd. jjlld bever~ge brands, incb,ldi'!)g 19 different prodllct lines thateliCh generates mpre.•tMn $1 billion in annual retail sales. Our main businesses - Frito.Lay,Qilaker,.Pepsi.,Cola, Tropicanaand Gatorade - make. hundreds of n0mishin~, functional, tal>ty. and affpl'd~ble fo~ds and ~. t!)at bring JOY. to our consumers ill more than 200 countries. We are not only PEPSI brand s~da,LAY'S brand potato chips and QUAKER brand oatll1eal, but wearea1s~ ;!lero calorie SOBE UFEWATER, ~.tW~btandh.Ul11mus,and NEAR EAST brand whole grain blends, to mention only a few of our products.
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On a global basis, PepsiCo operates more than 700 manufacturing facilities, employs 300,000 people, operates approximately 190;000 distribution r04t¢s directly and through out bottlers, and sel"Ves nearly 10,000,000 retail outlets. In the U.s. alone, PepsiCo employs approximately 108,000 Americans and has facilities in allllostevery stille.
Performance WithPt.trpose PepsiCo's assodates- the more than 300,000 tlmploy·ee$ aroUfld th¢ world - are united byollt unique cQmrnitment to sustainable growth, called "Perforrnance with Purpose."! Tbismeans that we strive every day tocllfe for OtIr customtlrs; coi1Sumers and the world we live in. By dedlcatipg otIrSelves to o±'ferirtg a broad artayof choices for healthy, convenient and fun notIrishrnent, red4cin9 OtIr environmentall~pact, and fostering a diverse and inclusive workplace c41ture, PepsiCo balllllces strong firtancial returns with givihg backto our coiluriunities worldwide.
PepsiCo sets and follows high stand;ltds for ethical governance and corporate citizenship. That COlliil1itment has been recogn1:r.ed with nnmerous awards and /l.clmowledgements, includirtg the f&llowirtg recent honors:
• PepsiCo Was named among FQr4tnc's World's Most Admired Companies in 2011, for the third consecutivey.ear;
• PepsiCo was ag/l.in incli:lded in the Dow Jones Sustalnability Index (DJSI World and DJSI North America) in 2010 for OtIr econowc,enViroll1l1ental and social p.erformance~
• PepsiCo Was ranked among Fast Company's 2011 World's Most Innovative Companies for OtIr COlllJilitment to healthy research and development, as well as otIr environmental sustalnability efforts;
• Ethisphtlre has named PepsiCo among its World's Most Ethical Companitls for the past five years (2Q07-201l), one of the few companies in the WOrld with this record;
• Pep$iCo received numerous employer recognitions .in·2010, irtcluding from the Oreat Places to Work Institute, llIld ynl"tlrsum,whicknarntld PepsiCo among the Top 50 ofThtl World's Most AttraetiveEmployers; and
• FIonots for our Diversity and Inclusion efforts in 201 0 include: Diversity Business Magazin\;'.s Top 50 OtganiZ<\tions for PiYetsity; N!lti~llal Association fQr Femaltl El(\;c1.ttives' Top Companies for Executive Women; Black Enterprise Magazine's Top 40 Companitls for Divtlrsity; Worlsirtg :M:othtlr Media's Btlst Companies for Multiel:iltural Women; Asillll MBA's Best Companies for Asians; Hispaliic Bustness MagaziM's Top 25 Companies for Supplier Diversity; The HUlllllll Rights Carnp/l.ign's. Btlst Place.s t9 Work for tOBT Equality; and Corporate Aehievtlrs for Individuals with Disabilities' 2010 COrPorate Atlhievers Award.
I Additional information about PepSiCo Perionnan¢e witb PU!}1ose is available at our website, loeated at ~1tP;IIW'ww.pepsico.colll!purp(jse/Perforrnance·Witb·Purp(}se.btml.
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We include this list of hO!1ors not for self"promotio~ but to h\ghlight PepsiCo's demonstrated and externally validated track record of social responsibility.
II. PepsiCo's Record of Responsible Practices
Well before the IWG came forth with its Proposal, PepsiCo embraced a variety of voluntary programs aimed at improving consumer health and weU4ieirig. We have vobmtarily a<Jopted ouroWtt bold nutrition goals for the entire PepsiCo portfolio. We have also voluntarily: aqopt\;ld meaningt1.t1 lir,nits on ma,rketing to ..Wldtel!, 1JlcI4<Jing active support of the CFaA]', the school g!tidelmcs .. developed by the Attiance for a Healthier Generation {"AHG"},and similar programS.discussed below.
PegsiCo's Overall Nuttition Goals As of 201 I, approximately~13billion of PepsiCo's $60 b\Uion in.annual salescotiJ,e from nutritiousaud :f.W,tctiOtiaI products (frUit juices, oattneal, nuts and seeds, dahy products, sports drlnksforathletes, etc.). We have set anambitio1lS goalofbuUdirtg a $30 bUlion nutritiortb4sincss by 2020. To achieve this bold glial, we have expanded our research and development team, led by a well.regarded chief'science offlcer, to iU(~l11de a number of wotld·renowne<J medl..al <Joctors, nlltritiQnists and food sc;ientists who are working together10 ilnprovethe nutritional cre<Jentiills ofmany of our existing products, an<J to develop new.products. We have announced a set of industry4eadingnuttition goals, including: (f)teducingtheamount of~aturated fatper servingjn key glol;lal food I;lrands, in key countries, by 15% by 2020, cOmpared 1Oa2006 baseline; (ii}redncfngthe average amount of added sugar per serving in key global beverage brands, .in ..key countries, by 2$% by202Q, compared. to a. 2006 b;lSeline;(iii) reducitl~ theavera.ge sodilllll per servinI': in key global food brands, in key: countries, by 25% by 2015, compared to a 2006 b;lS.~line; and (iv)il'lcreasing!b(l amOlll1t ofwllqle grains, fiber, frUits, vegetables, nuts, seeds and loW-fat dairy in oUt global productportfOlio.
We are also investing in our portfolio to provide more food and beverage choices made with natural and wholesome ingredients that contribute to healthier living. For instance, within the past year, in the U.S., we have reformulated our LAY'S potato chips flavors by removing all artificial colors, artificial flavors, and artificial preservatives; and by reducing sodium an average of25% across our entire flavored potato chip portfolio.
PepsiCo is proud of each and every one of the products in our portfolio, and believes that a wide variety of foods and beverages - from "good for you" to "better for you" to "fun for you" products - has an appropriate place in a balanced diet and healthy lifestyle for jJeople ofall ages. Even foods and beverages that we voluntarily refrain from advertising directly to children under 12 and that don't meet specific nutrition criteria can be enjoyed in appropriate portions and contexts (e.g. when selected by parents as an occas;ional treat for their children). For example, a 1 oz. serving of LAY'S Classic Potato Chips contains 160 calories, Ig saturated mt, Og trans fat, 170 mg sodium, and 10% DV of potassium and Vitamin C.
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Alliance for a Healthier Generation In 2a06, PepsiCo and other food lll1d beverage industry leaders worked with the AHG, a joint initiative of the American Heart Associlltion and the William J. Clinton Foundation, tp establish guidelines for foods and beverages available to children in America's schools. The beverage guidelines prohibit the sale offuU-calorie soft drinks to schools for students in elementary and secondary schOols and pelinit only IOw-clllorie and portioncontrolled choices. In March of 2010, lll1 independent auditor verified that 9S.8percent of measured schools were in complilll1ce with the beverage guidelip.es and thllt total beverage calories shipped to schools were reduced by gg percent since 2004. The "competitive food" gmdelines, which apply to products sold outside the reimbursable school meal plan (e..g. for a la carte sales, vendin!! sales lll1d sales in school stores), set lintits for calories, fat, sugar and sodi\lIll. Since· 2006, PepsiCo has introduced more than 50 new products that meet the competitive food guidelines for schools, continuing to e)\'pand the range ofhealthier lll1d nutritious options for School children.2
Children's Food and Beverage Advettising Initiative and PepsiCo GlobalCriteria As described in more detall in Section VI of these comments, PepsiCo was a foundip.g member oftheCFBAI and has pledg{,!dsince JantWy MaS to follow voluntary guidelines restrictingadvettising to children under the age·of 12 in the United States to products that meet specified nutrition criteria and to refrain frornanY P!'oductadvettising in elementary and mi<1dIe schools. A signifieant group of other major national food and beverage companies also participate the in the CFBAI pro.gram.3
Effective January 1, 2011, PepsiCo also implemented a global policy restricting advertising for food and bevera,ges to children under the age o:f 12 to thosepro.ducts that meetstriagent yet practical nutrition criteria. These global nutrition criteria have been mcorporated into the PepsiCoCFBAl Pledge. A copy of PepsiCo's current criteria for a<1vettising products to children under the llge of 12 is attached as Exhibit 1 to these comments. We believe that our nutrition guidelines are more consistent with the 2010 OGA than the IWG standards; and provide strict yet practical limitations on products to be marketed directly to children.
BeverageAssociation Initiatives PepsiCo complies with the Jritemational Council ofBeverages Associati(;>D,s ("leBA") Gui<1elincson Marketing to Qhil<1ren, whi¢h prohibitplacentent ofany marketing ¢ont[l1tiJ:lication for non·alcohOlic beVerages othert!lan water (mineral, source and purified), fruitjuice, and dairy·based bev{,!rage, as definc<1 bY l(leal regul&tions, in paid ti!ird party media whose audience consists of 50% or more ofchildren under the age of 12.4
2 B~ca»se. PepsiCo's food product, are. sold to schools by third party distributors, we do not have sales data ttl. 'lIlMtilYthe iIllpaetofthe snack policy. ; CmtclitCPlW P!ll'!iClpMts otht>l'~ PepsiCo, Inc. include many ofthe largest groceryli:lanufacturers: Gadbury AdamsUSA LLC, Cajtlpbell Soup Company, 11Ie Coca ColaCo.,ConAgraF~ods;Inc., The DMnOI\ C9mpMy, General Mills, !nc., Hershey Co., Kellogg CompMY; Kra.ft FoodSGlohal, Inc., Mars $nackfoQds QS, LLC, Nestle USA, P9St Foods; LLC, Sara Lee Corp., Md Qnilever UnitedStates. 'Full delaUs are avaiIa1Jle atbttp:llwww/icba-netotg
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PepsiCo also participates in the American Beverage Association Clear on Calories lmtiative, which req\!ires beverage eompanies to add label disclosures to the front of every can, bottle and cartOn displaying the total calories per contaiuer on beverages 20 02'.
and smaller.
The Cleat on Calories iuitilltive was praised by First Lady Michelle ObatJ1a, iu a speech announcing the lannch of the "Let's Move!" anti-obesity. campaign; ", ..the.nation's largest beverage. companies announced that they'll....provide clearly visible information aQoUlcalories on the front oftheir products - as well as on vending machines and soda founfqins, ThiS is exactly the kind ofvital injbrmatiOn parents need to make good choices for their kids; ,i5
Nutrition Keys PtogratJ1 PePsiCo, along· with many other leading food and beverltge manufactul'C!rs al1d TC!tailers, has also agreed to Pllrti<}ipate iu the GMA and Food Marketing Irlstitute ("FMl") Nutrition Keys program, a front.of~pl!.Ck labeling initiative that will make calorie and other critical nutiition in:fonnatiou visible to consumers on the shelVe!! to faeilitate mfonned food and beverage purchases.
Healthy Weight Commitment Foundation PepsiCo is one of the founding members of the Healthy Weight Commitment Foundation ("HWCF"), a 160-member organization committed to reducing obesity - especially childhood obesity. fu 2010, PepsiCo joined other food and beverage companies by pledgiug to reduce 1.5 trillion calories by 2015, and in 2009 the PepsiCo Foundation made a two-year commitment of$2.5 million to the HWCF to increase understanding and opportunities for physical activity and nutrition education.
In 2011, the HWCF launched "Together Counts," a U.S.-wide campaign that encourages families to eat meals and engage in physical activities together to help coanter obesity and promote good health. The Together Counts program is aimed at encouraging energy balal1ce between calories consumed and calories expended - a fundamental underpinning of efforts to reduce obesity. Through the Together Counts website, participating families are provided with online tools to track their own progress and compare against others, as well as tips, advice and a downloadable mobile app.
'Fil'slLady Michelle Ohama, asnote.d in her speech announcing the tllnnch ,,["Le('s M"ve" (February 9, 2010).
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II. PepsiCo's General Comments on the Proposal
PepsiCo shares the IWG's concern for the health of childten and adolescents and, as evidenced by our leadership role in existing voluntary programs s4th as AHG and CF8AI, has long been comtllitted to being part of the solution to childhood obesity. Whilc wc respect the IWG's efforts to improve children's diets and reduce the. rate of childhood Obesity in America, we do not .believe that this Proposa] presents a workable solution to tht problem.
The IWG assutrles, without any evidence, that there is a causal relationship between the marketing practices it proposes to banish and the problc;m it purports tp solve. It then leaps to the unfounded conclusion that the Proposal would have an appreciable curative effect on obesity rates among American children and adolescents.
We take issue with the IWG's characterization of its Proposal as nothing more than a gentle suggestion for possible industry self~regulation. In reality, most itJ.tetested patties expect the agencies of the IWG to use the full weight of the government's considerable influence to "persuade" food and beverage companies to participate and adopt these unmistakably "governmental" sW1dards.6 The food and beverqge industry is heavily regulated by the same agencies that make up the IWG, and these agencies are in a position to apply significantpressure on the food and beverage companies. Media outlets may also be pressured not to run advertising that does not comply with. the Proposal. Moreover, companies that do not comply with the Proposal may face dlltnllge to their reputauons.andlor be subjected to class-action lawsuits based on non-compliance with the Proposal.
PepsiCo also agrees with comrp.ents from the American Beverage Association ("ABA") and others identifYing the IWG's failure to adhere to.establishl'<d agency procedural requirements prior. to iSsJ;ling. tl;ie Proposal. The IWG agencies have skirted the requirements of the AdministratiVe. Procedures Act, 5 U.s.C. § 553; neglected the cost· benefita~alysisofExecutive. ()tdet 13.,563; and failed to trie¢tthe accuracy, reliability lllld objectivity of iuformation standards contained in the.Data Quality Act, 44 U.s.C. § 3516,. and its itnplc;mentingregulation,61 Fed.. Reg. 8452 (Feb. 22, 2(02). Additionally, even if it i~ not technically a regulation, the IWG agencies should· have at least characterized the Proposal as an "economically siwrificant guidat),(le docj.llilent" within the meaning of OMB Bulletin 07-02 ("Final Bulletin for Agency Good Guidance Practice~~,Jan. 18,2007.
6 Martll) It. R~<li~h, "Childhood ()b~.ity,Adverlisil1g, and the First Amendment - " White Paper", June 8, 201 1(presented at the US Challlbetof COlllffierce Regulatory Affitirs Committee meeting; June 30, 201 L)
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In addition, PepsiCo agrees wholeheartedly with the general comments submitted by the CFBAI, the Grocery Manufacturers Association ("GMA"), the ABA and others in opposition to the Proposal. These comments clearly and convincingly:
• Outline the harmful economic impact ofthe Proposal; • Expose the absence of any credible evidence that the proposal would haVe a
positive impact on the health of children or adolescents, and point out that obesity rates have been rising while advertising food to children has actually been decreasing;
• Question the necessity and/or appropriateness ofrestricting advertising directed to adolescents, as opposed to children;
• Hig1i1ight discrepancies between the nutrition criteria in the Proposal and other respected nutrition guidelines and criteria, inclUding the 20I0 Dietary GUidance for Americans; and question the science behind the proposed nutrition criteria;
• Describe the many ways in which the marketing definitions are overly broad and likely to capture significant marketing activity and other consumer communication not reasonably targeted to children or adolescents;
• Question the constitutionality ofthe Proposal; • Identify procedural defects in the process by which the Proposal was issued; • Characterize the Proposal as an attempt at "back door" regulation; and • Set forth compelling reasons Why the current CFBAI program is a I!uperior
alternative to tbe Proposal, especially with the new uniform nutrition criteria.
Rather than rearticulating tbelle points that otbers bave already thoroug1i1y explained, PepsiCo'S comments on the nutrition criteria and marketing standards are designed to supplement and provide specific examples to illustrate the concerns expressed in more genera.! terms by the other entities submitting comments in opposition to the Proposal.
IV, PepsiCo's Comments on the Proposed Nutrition Criteria
Omission of Healthy and Nutritious Foods The Proposal would deem as "unacceptable" many wholesome and nutritious products, inchidmg sQme that qualify as "healthy" and/or are eligible for health claims under FDA regulations7
, are "eligible prod9ctl!" under the Healthier US School ChaUenge&, and that qualify for sale in schools under the Alliance for a Healthier Generation9
• Although th¢se
7 RQLJ}GOLP HBARTZ:ELS Pretzels meet the FDA definition of"healthy" (21 CFR 101.65 (d)(2»)but are ineligible under the IWO'S proposed nutrition criteria, Most QUAKER oatmeal ptoduetsate eligible for FPA"approvedhealth claims regatdingsoluble oat fiber and cholesterol reduction, yet many varieties do n\llmeetthe tWG's proposed nutrition criteria, • ~ples ofproduetspeuaitted under the US Healthier Schools Challenge in~lude all flavofsof sUNqB:IPS snacks (RJ:imbursable Meals) and a variety of Baked! LAY'S pO(atocrisps, Ba1>ed! CH~ETOS sn~~ks,Baked! TOSTITOS SCOOPS! Tortilla Chips, MUNCHIES I'lamin Hot Bacl<p'ICKMi", sn~ck.mi"',QLJA.KER Kids Mi",snack mix, Reduced Fat DORITOschips, STACY'S cinnamon sl,Jgar pita cl!ipsallll RQLD GOLDl'!EARTZELS pretzels, 9 E"'amp1es ofpr\}dqcfs 'llllllifYing under the AHO competitive foolls &tPdelil\esf\}relementary sch\}"1ls are various QUAKER CHEWY bars, QUAKER O&tmeal prodUcts, B&ked! CHEETOS snacks, B&ked! LAY'S
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products qualifY under other strict yet rational criteria, the IWG Proposal's broad definition of marketing (which includes labels) would ban the sale of these products in school. This result would create significant economic hardship for affected companies and school districts, while offering no corresponding benefit as the newly disqualified items meet other strict and appropriate nutrition criteria.
Over the past few years, PepsiCo has invested heavily in the development of new products and the reformulation of others to provide "betler·for-you" and "good-for-you" options forconsumers that taste great, are affordable, are lower in calories, sugar, sodium and/or fat than other food and beverag¢ choices and/or that provide positive nutrition benefits such. as whole grains. Despite these efforts, most of ¥¢PsiCo's "better-for-you" and "good-for-you" products would not qualify under the Proposal and could not easily or inexpensively be reformulated to comply.
Notable omissions under the Proposal in the beverage category include a variety of zero calorie, loW calorie, reduced calorie and functional beverages, including:
• AQUAFlNA and other zero calorie bottled waters • SOBE LIFEWATER, PROPEL ZERO, AQUAFlNA FLAVORSPLASI! and
other Zero and low calorie water beverages • GATORADE and reduced calorie 02 Sports Drinks, which provide scientifically
proven functional benefits for those engaged in sports and physical activitiesI0
• TROPICANA Trop50, IZZE ESQUE and other reduced calorie jnice drinks
crisps, QUAKER Kids Mix snack mix, Reduced Fat DORlTOS tortilla chips, Baked! TOSTITOS SCO~PS! Tortilla Chips, ROLD GOLDHEARTZELS Pretzels and STACY'S Ciuualllonsugar pita chips. 10 GATORADE thirst quencher has a functional benefit related to calories, is intended for athletes and active people ofall ages, and is not advertiSed or promoted as a drink for sedentary children or adolesceIlts. Res<!\ll"~hasshown that, at 50 calories per serving, the fluids andeIectrol)'!es of GatoradeiU"e. rapidly
.... allsorb.'f ilfi,ftlie' muscles are properly· fueled· for exercIse: Provldlng flUids, sodIum and calories IS· apprqpriate for an athlete ofany age,partiCUlarly football players and other suited-up athletes pr~cticing in the heat. As noted by the Committee on. Sports Medicine and Fitness of the American Academy of .PedialricsQ1ereinafter "AAP") in their ZOOOPo!icy Statement on Cli",aticH¢4t Sttess and the Exeri!/sing Cljillj dtld Adolescetrt: "Exercising children do notadapt to extremes Q[temperatureas effectively asadlllts wile!! e",pos~d to a high climatic heat stress. The adaptation of adOlescents falls in b~een ... Children ft'cqUently do noHeel the need to drihk enough to replenish fluid loss duringprolo!!gedexercise. This may lead to severe dehydration... A major consequence of dehydration is an excessive increase in cOre bQdy temperature. Thus; the dehydrated child is more prone to heat-related iUnessthan the fully hydrl1ted child. For a liiven level of hypohydration, chHdt'ehare subjectto a greater increase in core body temperature than are adults. Although water is an easHy available drink, a flavored beverage may be preferable b.ecause the child may drink more of it. Another important way to enhance thirst is by adding sodium chloride (approXimately 15 to 20 mmollL, or 1 g per 2 pints) to the f1avoredsolu!ion. This has been silown to inCrease voluntary drinking by 90%, compared with lJUflavored water. The above concentration is found in co~erciallyavailablesl'orts drinks." Then in a 2005 Poliqy Statemmt on Promotion ofHealthy WfilJhtContro[Practices in Young Athletes. the AAP COmmittee noted: "Becanse the bopy dQes notstQre fiui4 qr ele~trolytes before exercise, it is predisposedtodehydration. The eldentQfthedehYdration is determinedpy sweatl~ss and the inability or refusal torepla!;:e t!lose losses with oral f1uid$.Onthe pasis of stndlesin adults; we~t lQSS by dehydration results in suhoptimal.performance.hecause of impaired strength, reaction time,. endurance, and eleetrOI)ite imhalance and aCIdosis. It alsQ ma)' resU:\t .in temporary learning deficits; inability tocQncentrate, lethargy, mood swings. and changes in cognitive state."
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• Diet PEPSJ, TROPJCANA Light Lemon&de, LIPTON Diet ked Tea and other zero calorie, low calorie and reduced calorie beverages
In the food category, notable omissions under the Proposal include: " QUAKER Instant Oatmeal- assorted flavors (a handfi.il do qualify)ll • QUAKER Rice Cakes • QUAKER Oatmeal Squares " Baked! snacks • SUNCHIPS multigrain snacks l2
• A variety of emiched grain productsl3
• TOSTITOS tortilla chips and other products containing 8g or more ofwhole grain per serving14
PepsiCo estimates that less than 5% of its current portfolio muld qtlalify under the nnrealistic nutrition criteria contained in the Proposal,and that meeting the IWG's proposed criteria for most of these prodllcts would be difficult (ifnotiutpqssible). Even where reformulation is. possible, it would likely result in more e~pensiveproducts that are ultimately not palatable to children or adolescents. More practical priteria that is consistent with the 201 0 OGA and permits a broader range of products is more likely to
.. be~aecepteJi.byconsumers, .and thereforemoreJikely. to actually improv.e,dietary habits.
So.diumLimitsthe tWG's proposed sodium limits are unreasot1able,especially when a.ppliedto foods with a small RACC. Under the Proposal, theinterim sodium target for products with a 30 griUnRACC will go from 2LOmg to Mmgwhen the 2016 sodium step"dQWt! OCCf
solely to individuals with hypertensioll and other at-risk sub-populati!:lns. Most children fall into the general population and should not be targeted to a low sodiurndiet.
Adde.d Sugar The IWG's reliance on "added sugars" as a disqualifying factor Wdcr the proposed nutrition criteria is also problematic. Added sugars are not part of the FDAcmandated Nutrition Fact Panel and are not easily determined or understood by consurners. Moreover, the small RACC rule provides further complexity. The nutrition criteria should be tied to total sugar per labeled serving size, consistent with the Nutrition Fact Panel.
V. Issues with the Proposed Marketing Standards
PepsiCo disagrees strongly with the exceedingly broad marketing defmitions contained in the Proposal. As explained below, the Proposal, if implemented, wOuIdamount to a de facto ban on food and beverage advertising. It would significantly harm our business, and many other business.es, without any evidence by the IWG that it would actually improve the health ofchildren or adolescents.
Definitions Have Not Been Properly Vetted Contrary to statements made by defenders of the Ptoposal, the marketing defInitions in the Proposal have not been properly vetted or shown to provide a workllble framework for restrictions on food and beverage advertising. It is true that food and beverage companies. were compelled to utilize sllbstantially the same defmitiQns under the FTC's 2006 and 2009 Food Marketing Studies. However, as conte1Upotaneously noted by PepsiCo and other responding companies, these marketing definitions are seriously flawed. In bQth 2006 and 2009 they captured significant marketing ~cti"iry properly characterized as adult-targeted, and they resulted in gross overstatements of advertisitlg
.ajld...marj,(~gIl9!iviti,~ .. dlr!'2te<l. .. \Q .9hil<.iren.lln<l.. tcel1s•.. lJse .ofJhese.s~¢ .J'lawe<.i marketing definitions in the Proposal guarantees the prohibition of adult-targeted communications under the gllise of a prQgram that PurPorts to restrict only advertising and marketing targeted to children and adolescents.
Audience Demographic Thresholds The two's. proposed audience thresholdS for children (30%) and adolescents (20%) are unreasonably low and will inevitably restrict messaging, even whereitisesl:<lblished that the clear intentQf the advertiser is to reach an adult aUdience. PepsiCO'sexpenencewith the 2006 and 2009 Food Marketing studies provides multiple e)(amples ofaduINargeted advertising for adult-targ~ted products being aired under an adult-targeted insertiOn order on programming that had historically been viewed by an overWhelmingly adult audience being misclassified as directed to children because of isolated and unllriti¢ip~ted spikes itl audience composition. Even in those instances, it is important to note that the actual audience compoSition remained more than 50% adult.
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One example of the absurdity of these proposed marketing definitions is that the Proposal would ban our Frito.Lay "Women's Portfolio" advertisements (e.g. f()r Smatlfood Popcorn Clusters with fiber and calcium for women) because of an unexpected and uncontrollable blip in adolescent viewership above 20% under a media buy targeted to Women aged 25-49. The advertising campaign was titled "Only in a Women's World" andfeatured 4 animated adult female characters engaged in situations and convers~tions app~ling to adult women, yet we were required to report expenditures asadolescent"targeted advertising in the 2009 FTC Food Marketing study. We have provided a typical image from the Women's Portfolio creative, where a women looks in a mirror, seeS a plump cupcake smiling back at her, and says: "Whoa, bad mirror." This advertising is in no way targeted to children or adolescents and should not be restricted under any rational program purporting to be about advertiSing to children.
The proposed marketing defmitions ignore the realities of how media is purchased, as well as the intended target audience of the advertiser. By focusing on actual viewership, the Proposal's approach is .tantamount to an after-the-fact strict liabUity game of "gotcha." The defmitions shoul4, like the CFBAI criteria, take into account the projected audience demographics at thetiine the media is purchased and the actual intended target audience. Under a typio;:al insertion order, the media outlet promises a tnillimurn nmnber of impressions among the target audience (e.g. adult women), but does not make any commitments about the audiene.ecomposition. Itis simply not possible to puro;:hase media with a guarantee. from the media outlet that the advertising will not reach more than 20%
. ...... feens ()r .50%clllIifteii: .Mediii'ouyers review 1ii~()ricai .View¢isliip piitleffis jjj).amak'e media purchases based Of! projected au4iencecompositioD. This is consiStent with the CFBAI approach to 4efiningadvertising to children, which currently utilizes a projected audience composition of 35% children. Based on our experience, the lines between adolescent and adult pmgrillmPing would be much blurrier than those between adult and child programming, and the proposed 20% adolescent threshold nearly gUarantees that any adult media buy risks being miselassified as advertising directed to adolescents under the Proposal.
Adolescents It is well established that very young children do not have. the cogriitive ability to distinguish advertisirjg £r.om. other «ontent .orto appreciate the persuasive intent of advertising. For that reason, PepsiCo's CFBAl Pledge promises not to direct any advertising, for any prpducts,directly to children Under the age of 6. Under the CFBAI progmm' only those f~(jdand beverage advertisements featuring produo;:ts. tltatmeet strict nutrition criteria will be directed to children between the ages of 7 and 12. Ii1 contrast, adolescents havethecqgtli,tiVe ability to distinguish advertising from other programming and should not be treated the same as children for pmpqses of restrictions on food and
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beverage advertising. PepsiCo supports the approach of the CFBAI in limiting the scope ofvoluntary restrictions on food and beverage advertising to children under the age of 12.
Not All Animated Characters are TargetedtoChildren or Adolescents Another significant problem with the proposed marketing definitions in the Proposal is the mistaken assutnption that all animated characters are child or teen directed. Many animated characters appeal to adults, such as Cracker Jack's Sailor .rack and Bingo characters, who are targeted primarily to nostalgic adults ll1ld sports fw. Similarly, the four cartoon women in the "Ouly in a Woman's World" advertisements (described above) are unmistakably ta!"geted to adult women and are not appealillg to children or adolescents. By once again ignoring the intent of the advertiser and disregarding the actual target audience, the Proposal improperly restricts advertising targeted to adult audiences.
Company Owned Characters Should Not Be Restricted Yet another significant issue with the proposedmarkcting definitions is the failure to distinguish between company-owned characters and 3'd party licensed cl.:@"acters. This is in stark cnntrast to the CFBAI program, which properly limits orily licensed 3rd party characters in advertising primarily directed to children. Th" inclusion ofcompany-owned characters under the Proposal is. maglIifiedby the improper inclusion of packaging and point of sale materials in the definition of advertising actiVity. The net result of these sweeping defib.i?ons would betheeliminlitionofvaluable trademarks such as the Quaker
....1I11,lIhGhesteLGAeeJllll,llnd..SailQ!!llcKll!1(,IBjp.gQ:trQlI1QJ!I'prodllct packMesll!1d.pQintof sale displays, which amounts to a wrongful taking of our property.
Parent-Targeted Advertising
In order to make informed decisions about food and bev"f!lg" choices for their childr"n, parents need aceess to truthful information. aboutptQdnct attributes. . The marketing d"finitions in the Proposal improp"rly capture significant advertising clearly targeted to parents. The US" of certain words (e.g.. kid, child, or teen) should. not. transfonn advI;Jrtising clearly intended for adults into restricted child or adolescent advertising. Similarly, the mere inclusion of child/teen models in advertising shpuldnQt transform advertising intended for parents into restricted child or adolesoont advertising un:der the
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Proposal. Such prohibitions hurt parents by limiting their access to information, in addition to trampling the free speech rights of companies.
This image (above) is an example of overtly mom4argeted material for a product (in this Case a 22 count multi-pack of Frito-Lay snacks) suitable for purchase by adults for their families. It would, however, be banned under the Proposal. This material also included a philanthropic element benefiting youth sports programs.
Comorate.Sponsorships C(jrporate sponsorships would also be affected under the Proposal because our company name (pepsiCo) includes the name of our iconic carbonated soft drink. (Pepsi). We have si!nilarissues with the names of individual PepsiCo divisions, which include the names of some of oUt most famous brands: Quaker, Tropicana and Gatorade, and argual:i!y Frito-Lay, whicn combines "Fritos" and "Lay's." The Proposal would inhibit companies from sponsoring or advertising in concert halls, sports arenas and other entertainment venues where the audience demographics change from event to event arid ClUUlot be
. .. aeouratelYl'redieted at the time the spOnsorship decision is made;
The ./i'foPQsal Would have the counter-productive effect of inhibiting companies from spOilsoringathletes, sports teams, sports leagues and programs andlor prolllQtingphysical activity and healthy lifestyles. PepsiCo currently sponsors a wide variety ofprofessional and aJ:liiltetlt athletes, teams, leagues and programs on a national and local level, including many Gatorade-sponsored youth sports development programs that have a positive impact on the fitness of children and adolescents, encouraging them to get.active and stay active. All of this sponsorship would be jeopardized if the Proposal were implemented.
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,~"E:
e A $ K E T
Philanthropy Corporate philanthropy would be significantly curtailed under the Proposal, which WOUld have a dramatic negative effect on many charities benefiting children and/or adolescents. g){~l:'I~~("rogratnS thatw.oU-I~~erestricted under the Proposal, include the PepsiCo Refresh Everything grant program, wlUchawards more than $1 million per month in grants to fund consumer proj~ts for arts, music, education, communities and other worthwhile causes; and Frito-Lay'sSeore for Your School promotion, which awarded more than $375,000 to local high school sports programs this Spring.
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Movie and Video Game Ratings. Alone Do Not Indicate Target Audience The Proposal is further misguided in that npt all G rated movies anQ!or video games are targeted to children and shOuld not automatically be deemed to be advertising to kids. Under the proposed definitions, food and beverag<: comp<l!lies would be prohibited from sponsoring a science·oriented-adult-targeted documentary film like March of the Penguins by virtue of the G rating, which is based more on the absence of cursing, nudity, violence and/or sexual content than on its llCtual audience appeal.
There are additional issues with the proposeQ marketing definitions; however, We believe the foregoing examples highlight the Proposal's excesses.
VI. The Existing Chjld(lln'S Food ~nd Beverage Advertising Initiative is a Preferable Alternative to the IWG Proposal
PepsiCo is one of 17 leading food and beverage companies that participate in the voluntary CFBAI program. o.ur CFBAI Pledge is a1ta¢heQ as Exhibit 2 to these comments. The CFBAI Program covers a broad range of advertising and marketing activity primarily directed to children under the ag<: of 12, including:
• TV • Radio • Print • Internet • Company Websites • Licensed Characters • Product Placement • Interactive Games • I'llifl"W:t>rd ofMolltltAc:!Yl:ttising • Cell PhonelPDA Advertising • DVDand Movie Spollsotship • In-School Advertising
Significant progress. has·beenmade unQer the CFBAI program inrcd\lcing the amount of food/beverage advertising directed primarily to children in recent years,ljlldellcouraging companies to improve existil1g produiJts and bring l1ew, more healthful offerings to market Previously, the primary criticismofthe CFBAIprograrn WllS the ®sence of uniform nutrition standards for prodqcts that will be advertised to children. The CFBAI has recently adopted minimum nutrition standards that are both science-based and reasonably achievable in the near term.
The CFBAI will continue to make a difference in the health of childrel1 as the enhanced program and newmil1irnum nqtriti(!U criteria are imp1e('ilertt.ed by participants, We believe that. the filStest way to make significant inroads against childhood obesity is 11,0t to layer yet another new set of governmental criteria on top of ilt;laltC;ldy cODlplex web of Qther govemmellt stalldards. EJl.ther. 'by (I ) allowing companies to focus on providing consamers a wider array ofWholesome and appetizing choices that fit into an overall diet
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consistent with the 2010 DGA, and (2) educating consumers about energy balance, we are more likely to attain real, incremental progress over time.
VII. Conclusion
While IWG's efforts are well-intentioned, PepsiCo does not support the Proposal. The guidelines are fundamentally misgtrlded for several reasons. First and foremost, the propos.ed nutrition sUtlldards are not grounded in scientific evidence and conflict with well-established standards and progtatns. Secondly, the Proposal W9uld restrict advertising for many nutritious products be¢al,lSe the proposed 1tllttketlng definitions are overbroad and guaranteed to inappropriately curtail advertising. and marketing activities focused on consumers generally, notch,ildten. Finally, the gtrldeHnes are unworkable. Practically speaking, it is not feasible for companies to purchase advertising for nonqualifying products targeted to adults without a high risk of the advertising being mischaracterizedas child or teen directed under the Proposal.
In sum, PepsiCo is committed to and invests substantial resources in product development intended to improve the nutrition profile of our product portfolio. As we have described in great detail, we participatein a wide variety ofprograms and activities that support. our commitments to improve the health of consmners, including children. We support programs requiring clear and accurate label disclosures about our products, limiting the sale of certain products in S<;hOllls, and restricting advertising of food or beverages to children under the age of 12 UIiless the products meet strict yet practical nutrition guidelines. We believe that the existing CFBAI progrllll1, enhanced with the new uniform llutrition criteria, provides a much better and more realistic alternative to the Proposal.
Thank you again for allowing us to share this feedback with the IWG. We look forward toa· contillUinlfdialoguewithall·ofthe·agllnlJilfS·tepresented'in the group.
Respectfully submitted,
/ (Maura Abeln Smith
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Exhibit 1 Summary of PepsiCo Global Nutritjlln Criteria For Advertising to Children - Effective 1I11ll
SNACKS AND FOODS: PepsiCo snack and food products must meet all of the following criteria to be advertised to kids under 12 years old:
:s 35% ofCalories ',' Total Fat Saturated Fat < 10% ofCalories~
Trans Fat < 05g per Reference Quantitv4
Cholesterol < 30mg per Reference Quantitv Sodium < 150mg Per Refe~ence QUll1ltity Added Sugar < 10% ofCalories~
Food Group to Encourage At least % serving ofone Food Group to Encourage· per f-::-::---;---.:::-----------j Reference Quantity NUtrient to Encourage OR
Minimum content ofone locally relevant Nutrient to Encourage? ner Reference QUlllltitv
AND CALORIE L1MlT;' All snacks to be advertised to children must also have no more than ISO Calories per package,
Footnotes: 1. Savoury Snacks may cOntain up to 43% ofCalories from total fat IF they alsO contain ONE
FULL SERVlNG·ofa Food Group to EnCOurage. 2. Seeds, Nuts andNllt Butters{eg Whole tree nuts, peanuts, seeds, tahini, peanulpaste) and Nut·
Containing Prod.uets (which contain at least 50% nuts and <=lg added fat) are not required to meet the Total Fat Umit.
3. Seeds, Nuts and Nut Butters may contain up to 15% ofCalories from Saturated Fat. 4. Reference Quantities have been established for a widerange ofSl!acksandf<1ttdse,g. 30g crisps,
30g nuts, 40g gmin"basedbars, 30g ready·to-eat breakfust cereal, 50gbread, 245ml soup. 5: Sweet·Snaeks;·BreakfiistCereals;·Sau-cesand·Dips:may·containllpld·25o/,vol'Caklriesfrom
added SUgar IF they also contain ONE FULL SERVING ofa Food GroUp to EllCOlll'age 6. Food GrolJP to EII""Ura!!e = Fruit, Vegetables, Whole Grains, Low Fat Mil.k Products,
NutslLegumes. Servingsizes have been determinedforeachFood Group. 7. Nutrient to Encourage = Protein, Fiber, Ca1ci\lll1,Potassium, Magne~iurn, Iron; Zinc, Folate,
Vitamin A, Vitamill D, Vitamin C, VItamin E (spe<:ific nutrients that may be used to meet this criterion are defined ldcally based On dietary gal's). Minimum contents per Reference Quantity have been delentiined for each Nutrientto. Encourage.
8. TheCalotie Ihnltdoesriotapply to foods (e.g, bread, pasta, pancakes, rice, brea,kf\lsl cereals, oats pasta, sauces, soup, dips). EXamPles of'suacks' are potato chips,crisp~, comchip~, .popcom, biscuits; crackers, bread snacks, muesli bars, grain-based bars, cookies, cakes; muffins, trail mix, nuts, seeds, nut clusters, nntlseed bars,
Il.EVEkAGES: PepsiCo Complies with the International Council ofBeverag~s Associations (ICBA) GUidelines on Marketing to Children. This COmrnit.nlellt is to not place lIllY marketing communicatittn for non·alcoholic beverages other than water (mineral, soureeandp1!rified), furit j1!ice,.and dairy-based beverage, as defined by local regulations, in paid third patty media wbose a1!dience consists of$0% or m(lre ofchildren under the age of 12. FilII details are at htlp:lfWWW.icba"nel.org!,
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Exhibit 2
ChUdren'sFood. and Bever:age AdMertislng Initiative
2011. Amended Phadge of PepsiCo Inc.
PepsiCo, Inc. is proud to be one of the first companies to commit <ls a participllnt in the Children's Food and Beverage Advertising Initiative (CFElAI). As an industry leader in the di\;cussions of children's maTteting, PepsiCo believes children are a special <ludience and takes particular care developing advertisements and evaluating programming that carries mesS!lfjes to children.
Through the company's major business units, which include Pepsi·Cola and Aquafina beverages, Frito.Lay sn<lck foOdS, Quaker food products, TropiCllna juices and Gatorade sports beverages, PepsiCo is continuously transforming its porl:fOllo to meet consumer needs, inCluding products chosen by young pe¢ple. As part of that on-fjoing ttanswrmation, PepsiCo has improved the nutritional profile of its flagship brands by changing to healthier oils, reducing'$ugar and sodium content, and expanding the range of products offered. A major plank of PePsiCO's "Performance with Purpose" commitment revolves around improving "human sustainability" and continuing the transfonnationof the PepsiCo portfolio to support that commitment.
PepsiCo is the only food and bevetage company to have signed voluntary agreements regarding beverages in schools and snacks in schoolS through the partnership with the Alliance far a Healthier Generation • a joint initiative Of the VViUiam J. CUntan Foundatic))1 and the American HearIAs$ociatlon. Elothafjreements represent break4hrough steps to adopt a practiCal pancy in the U.S. that pravides a sensible and workable Solution for young people, parents and educators.
In accorc!ancewilh CARUguideUnes, PepsiCo defines "advertising directed primarily to children undef12"based on ananaIYslsoftnefdlloWlnglaClofs,·no sihgleoneofwHicnWlIloeoontfolling:
• whether the contento! the media (e.g.: subject matter, format, characters and other advertising) Is. designed for children under 12,
• whether the advertised product or service is intended for use bY, ar is of interest to children under 12;
• where the media In which the advertising appears is promoted and advertised;
• whether 35% or more ofthe audience is projected to be qhildren under 12, based on available projections, at the time the advertising is. placed, of audience demographics; and
• for television programs, whether they are aired during wh<Jl is generally understood to be children's programming.
To conttnue Its responsible leadership, PepsiCo pledges to incorporate the core prinCiples of the
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CFBAI into its advertising primarily directed to children under 12 as fully described below (the
"PepsiCo Pledge").
The. PepsiCo Pledge PepsiCo understands the importance of being a responsible marketer to children and we commit
to standards that exceed the CF13AI policies and programs.
PepsiCo does not direct any form of adverting plimarily to children under 6. PepsiCo defines
"adv..rtising directed primarily to children under 6" utiliZing the $arne factors sei forth above,
SUbstituting "6" for "12" Where appropriate.
PepSiCo advertising (inclUding lV, radio, print and internet adVertising) directed primarily to
children under 12 will feature only products that rneei PepsiCo's Nutrition Criteria fur Advertising
to Children. These criteria meet or exceed established nutrition criteria based on authotitative
statements from th.. Food and Drug Administration and the· National Academy of SciemCE!s, as
well as standards that thE> CFBAI finds acooptabl...
PepsiCo Inc. is headtluartered at 700 Anderson Hill Road, Purchase, New York 10577. For
information r..garding Pledg..irnplementation contact Jeann.. E. O'Neill, Frito-Lay Mark..ting
Counsel, 7701 L..gacy DriVe, Plano TX 75024; Phone: (972) 334-3839; ..mail:
On behalf of all of its U.S.-based businesses PepsiCo makes the following commitments that are
in effect not lat..r than January 1, 2011:
lV&Radio
bne hundred percent (100%) ofany PepsiCo advertisirig'onlelevision or radio directed primarily tb.children under 12 will be f<jr products that meet PepsiCo's Nutlitibn Cliteria fbr Advertising to
Children. Television compliance will be measured using Nielsen and IRI ratings~tthetimethe
adVertisement is purcha$eo asw..l1 as. the time of programming and pr<:>gramminl! content. REldio
compliance will be measured using Amitron andl or RADAR ratingS as approprillte. Compliance wflli:le measured sepaTliltely fbr each medium. This commitment (or a similar commi.tment based on the prior Smart Spot nutrition criteria) has been in effect sinCE! notlaterthan January 1, 2008.
PrinlAdvertising One hundred perCE!nt (100%) of any print advertising directed primatily to children under 12 Will be f<jr products that meetPepsiGo's Nutrition Griteria for Advertising to Children, Compliance will be measured using PIB (PUblisherS-Information Bureau) Qr MRi (Mediamark research) data. This cbmmitment (or a similar commitment based on the prior SmartSpot nutrition critelia) has been in effect sinCE! not later than January 1, 2008.
Internet Advertising Not On Company Owned Websites One hundred percent (100%) of any internet advertising directed primarily to children under 12 will be for products that me..t PepsiCo's Nutlition Criteria for Advertising to Children. Compliance will be calculated relying upon ComScore Networks estimate of target age. This commitment (or a
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similar commitment based on the prior Smart Spot nutrition Criteria) has been in effect since not later than January 1, 2008.
Advertising on Company Owned Websites
Any company owned websites directed primarily to children under 12 will acknOWledge that the website is a form of advertiSing. and will do so in language appropriate for communication to th!'!
target audi!'!nc!'!. On!'! hunelr!'!d p!'!rcent (101)%) of the products featIJred will meet PepsiCo's NutritiQn Criteria for Adv!'!rlising to Children and !he site will alsoenoourilge active lifestyles. This
commitmeilt (or a similar commitment based on th!'! prior Smart Spot nultition criterill) has be!'!n in effect since not later than January 1, ZOOS.
Third"f>arty Licensed Characters PepSiCo acknowledges that from time-lO-limethird-party characters may be USed to promot!'! its
productS. In contrast to company-owned characters such as Cap'n Crunch or Chester Cheetah, th!'!sethird-party characters are usually licensed for a set period of tim!'!. These third-party characters may b!'! associated with television programs, movies, or the like. When such third
party charact!'!TS are used in advertising directed primarily elt Children und!'!r 12, they will be used
in conjunction with only those products meeting PepsiCo's Nutrition Criteria for Advertising to
Children. Licensing agencies haV!'! b!'!en notified of PepsiCo's pOSition. This commitment (or a similar commitment besed on the prior Smart Spot nutrition criteria) has been in eff!'!ct since not
later than January 1, 2008.
ProdUct Placement
PepsiCo Will not pay for or actively seek placement of our products in the content of any medium directed primarily to children under 1Z. productplacemenlag!'!ncies were nOtified of pepsiCo'S position. This commitment has been in place since not later thah January 1, Z008.
u.se ofBroducts in IntliralltjveGatnllS
PepSiCo Will not alloW its products to De incorporated into interactiv.e games designed primarily
for children under 12 unless s~chproducts meet pepsiCo'$N~tri~on Criteria for AdvertiSing to Children. Such interactive games include ilideo and COh1p~ter g:ames rated "Early Childhood" or "EC"l;ind other video/computer games that ate age grad$don the laoel or packaging as being
primarily directed to children under 12. Licensing agencies Were notified of PePsiCo'S position. This commitment (or a similar commitment ~ased on the prior Smart Spot nutrition critelia) has
been in effect since not lelter than January 1,2008.
PaJd-Word,of·Mo.uth·Advertising
PepsiCo does not and will not advertise its prodUcts to children under 12 via the medium of word
of-mouth advertising.
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Cellbbones and PDAs PepsiCo does not and will not advartise its products to childran under 12 via these media.
DVD Advertising and Sponsorship PElPsiCo (joes not adVElttise on nor sponsor DVDs of "G" rated moviEls that are primarily directed to cl'til(jren under 12. Neither does it advettise on or sponsor other DVDs whose content is p(imariiYchild~irected.
Advertising in Schools PepsiC() will not advertise our prollucts in elementary and middle sc;hools as these are the schoolS whiCh children under 12 attend. This includes book COVets, bO.ok packs, pencils, posters and the like. PepsiCo is the only company which is a signa:torytO both the snack fOOd and the
beverage school policy statements of thEl Alliance for a Hea!tIliijrGaneration, a joint initiative of the William J. Clinton Founllation and the American Heat! Association. PepsiCo is fully committed to compliance with these policy commitments,
Advertising Not Directed. Primarily at Children PepsiCo has provi(jed CFBAI with a list of all of our brenQs, il'lCltldlng those that llo not direc! advertising primarily to chilllren under 12. PepsiCo adver\isjngwhil::h is not directed primarily to children unQer 12 will continue to be held to the highest standards of the advettising industry.
NutritionStandan;js PepSiCO has provided CFBAI with references and citationstOtsuPP(jrt the nutrition foundation of its "}\dvertising to Children" nutrition criteria. Theseciitenaa?Q!?l;;ltldardS are. grounded in welfestablished and broadly recognized scientific; andl or .. g911~rlimel'ltal standards. PepsiCo's Nutrnion Criteria for Adveortising to Chili:!ren . can be . found at www.pepsico.com/Purllose/Performance..withPurposeIPolicies.html#rasponsible.marketing.
AS of January 1, 2011, the only PellSiCo products that are antiCipated to engage in advertising primarily to children under 12 are:
• QUAKER CHEWY® Grenola-'Bar - Chocolate Swirl (With 10g whole grein per 24g serving; low sodium; good source of calcium) - marketed by The Quaker Oats Company, a division of PepsiCo, Inc.
• QUAKER CHEWY® Granola Bar - Chocolatey Mint (With 10g whole grain per 24g serving; low sodium; good source of calcium) - markeoted by The Quaker Oats Company, a division of PepsiCo, Inc.
• QUAKER CHEWY® Granola Bar - ChocolateyCarameol (with 10g whole grain per 24g serving; low sodium; good source of calcium) - marketed by The Quaker Oats Company, a division of PepsiCo, Inc.
• QUAKER CHEWY® Granola Bar - Chocolate Chip Cookie Dough Bar (with 10g whole grain per 24g serving; low scdium; good source of calcium) - marketed by The Quaker Oats Company, a division of PepsiCo, Inc.
• TROPICANA TROPOUSTM real frUit squeezers - Apple World™ (flavored with other natural flavors) Fruit Puree & Juice Blend with Vitamin C and Fiber - marketed by Tropicana Products, Inc., a division of PepsiCo, Inc.
• TROPICANA TROPOUSTM real fruit squeezefS Cherry World™ (flavored with other naturel flavors) Fruit Puree & Juice Blend with Vitamin C and Fiber - marketed by Tropicana Products, Inc., a division of PepsiCo, Inc.; and
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•� TROPICANA TROPOLlS'" real fruit squeezers ~rape World™ (flavored with other natural flavors) Fruit Puree /li Juice Blend wfth Vitamin C and Fiber - marketed by -rtotlicana Products, Inc., a diVision of PepsiCo, Inc.
At any time in the fuMe should a decision be made to advertise one or more additional PepsiCo products to children under 12, PepsiCo agrees that only products which meetits Nutrition Criteria for Advertising to Children will be so advertised. PepsiCo will notify CFBAI of any suCh decision and will amend our Pledge accordingly so that CFBAI can effectiVely monitor PepSiCo's on~going
complian¢e,
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